Licensing Scheme for cable retransmission within the Territory of a Broadcast or Cable Programme originating outside the Territory. (Effective from 1 July 2017 to 30 June 2021) (Euro amounts in Appendix A being amended annually in accordance with Paragraph 8) 1. Scope of Scheme Subject to the exclusions set out in paragraph 2 below, this Scheme applies to the inclusion of Licensed Works in a Programme Service initially transmitted from another Member State of the European Economic Area and/or the United Kingdom and primarily intended for Broadcast outside the Territory, which is received and immediately retransmitted, without alteration as to the programme content of the Programme Service, by way of a Cable programme service (including retransmission via IPTV) within the Territory by a Cable Operator. 2. Exclusions This Scheme does not apply to Cable retransmissions in the Territory of Broadcasts or Cable Programmes transmitted or sent by or under the branding of BBC and ITV, each of which are the subject of a separate scheme entered into between the Cable Operators and the consortium of rights owners (including IMRO) regarding such retransmissions. In addition, this Scheme does not apply to: - the delivery of Programme Services over the internet to those members of the public who are not subscribers to a Cable programme service; - nor to the delivery of Programme Services to mobile devices of cable subscribers if the Cable Operator makes a separate and specifically identifiable charge for such delivery. 3. Definitions For the purposes of this Scheme: Act means the Copyright & Related Rights Act 2000 and any amendment, addition or successor thereto; Broadcast shall have the meaning given to it in the Act. Cable Operator means a person authorised to operate a Cable programme service (including the provision of such a service via IPTV) in the Territory. Cable Programme, Cable programme service and Cable retransmission and Cable retransmission right shall have the meaning given to them in the Act. First Licence Period means the period between the date of commencement of a Licence Agreement entered by a Licensee and the following 30 th June. Page 1 of 6
IMRO means Irish Music Rights Organisation CLG. IPTV means internet protocol television, a form of television service whereby audio visual content is retransmitted by a Cable Operator s system, using internet networking or wireless or mobile protocols via a closed service, to authorised subscribers to the Cable programme service within the Territory. For the avoidance of doubt, this definition includes where an authorised subscriber to such a service is permitted to access such content via mobile reception devices but only where no additional subscription fee is charged by the Cable Operator for such mobile reception device access. For the further avoidance of doubt, IPTV does not include so-called open internet delivery of audio visual content, whereby such content is distributed by means of the publicly available internet to non-subscribers to a Cable programme service Licence Agreement means an agreement between IMRO and a Licensee setting out the terms and conditions of the licence granted under this Scheme. Licence Year means the period commencing 1st July in any relevant year and ending on the following 30 th June. Licensed Works means all copyright Musical Works in respect of which IMRO manages the Cable retransmission right pursuant to Section 174 of the Act; Licensee means any person or undertaking to whom IMRO grants a licence under this Scheme. Musical Work means any work consisting of music and any lyrics or words written to be used with the music (if applicable). It includes any part of such a work. Programme Service means an individual television channel which is initially broadcast or transmitted from another Member State of the European Economic Area or the United Kingdom and which is received and immediately retransmitted without alteration as to the programme content of the Programme Service by way of a Cable programme service within the Territory by a Cable Operator. Territory means the Republic of Ireland. 4. Licence Any Person or undertaking who retransmits a Programme Service on a Cable programme service in the Territory which includes any Licensed Work, must obtain a licence under this Scheme and is required to sign a Licence Agreement. This Scheme must be read in conjunction with the Licence Agreement and in the event of any conflict or inconsistency between this Scheme and the Licence Agreement, the Licence Agreement shall take precedence. For the avoidance of doubt, pursuant to the terms of the Licence Agreement, while it is the relevant Cable Operator(s) who is/are making use in the Territory of the Licensed Works which are included in a Programme Service, it may be the responsibility of the person or undertaking who initially transmits such a Programme Service to obtain a licence under this Scheme. 5. Licensing Scheme Term Effective from 1 July 2016 to 30 June 2021. Page 2 of 6
6. Royalty Rate Calculation 6.1 The annual royalty payable by a Licensee under this Licensing Scheme shall be calculated for each Programme Service for which the Licensee requires a licence under this Scheme and for each Licence Year in accordance with the fees outlined in Appendix A of this Scheme. 6.2 If a Licensee s number of Programme Services, excluding time-shift and simulcast HD channels, falls within one of the below ranges of Programme Services, the relevant discount pertaining to that range will apply to the royalty due as follows: 6.2.1 If a Licensee s number of Programme Services is between 1 and 10 then the royalty calculated under Paragraph 6.1 for each Programme Service shall not be altered. 6.2.2 If a Licensee s number of Programme Services is between 11 and 20 then the royalty calculated under Paragraph 6.1 for each Programme Service shall be reduced by 2.5%. 6.2.3 If a Licensee s number of Programme Services is between 21 and 30 then the royalty calculated under Paragraph 6.1 for each Programme Service shall be reduced by 5.0%. 6.2.4 If a Licensee s number of Programme Services exceeds 30 then the royalty calculated under Paragraph 6.1 for each Programme Service shall be reduced by 7.5%. 6.3 Royalty invoice or invoices, payable within 30 days of invoice date, will be issued on either a monthly, quarterly or yearly basis as agreed between IMRO and the Licensee. 7. Provisional Royalty and Annual Review 7.1 On the issuing of a licence to a new Licensee, the provisional royalty for the First Licence Period shall be calculated in accordance with Paragraph 6.1 and 6.2 on the basis of an estimate by the new Licensee of the number of subscribers to a Cable programme service in the Territory that will have the ability to receive the retransmitted Programme Service(s) in that First Licence Period. 7.2 A Licensee shall, in accordance with the provisions within the Licence Agreement and within 60 days of the end of a Licence Year, review with IMRO for each Programme Service: - The cable subscriber range into which the Cable programme service fell within the Licence Year just ended or within the First Licence Period - Details of any additional Programme Services retransmitted by way of a Cable programme service in the Territory in the Licence Year just ended or within the First Licence Period - Details of any Programme Services that ceased retransmission by way of a Cable programme service in the Territory in the Licence Year just ended or the First Licence Period, and - Details of any changes to Programme Service genre. Page 3 of 6
7.3 Using this information the royalties payable for the previous Licence Year for each Programme Service shall be finalised and any unpaid License Fees invoiced or any overpaid Licence Fees credited. 7.4 The review information obtained and referred to in Paragraph 7.2 shall be used to determine the basis of the on account Licence Fees payable for the current Licence Year. Such Licence Fees will be calculated and finalised in accordance with Paragraphs 6.1 and 6.2. 8. Adjustment to Rates in Appendix A The euro amounts in Appendix A shall be subject to the following increases ( Royalty Increases ): - On 1 July 2018 a further Royalty Increase of 3.0% will apply; and - On 1 July 2019 a further Royalty Increase of 2.5% shall apply; and - On 1 July 2020 a final Royalty Increase of 2.5% shall apply. 9. Payment of Value Added Tax Every Licensee shall, in addition to the licence fees under this Scheme, also pay VAT on all licence fees to the extent such VAT is set out in an invoice received from IMRO in accordance with the Licence Agreement. If the Licensee is not liable to be charged VAT, the Licensee shall provide to IMRO, for its sole consideration or otherwise, due evidence to support this claim. 10 Programme Service Genre Definitions & Determination 10.1 Programme Service Genre Definitions Sports & News means Programme Services whose overwhelming majority of programming is generally recognised as being sport and/or news related. Niche/Specialist, means Programme Services with a clearly defined central theme running through the majority of their programming, this theme being generally recognised as having a limited audience when compared to general entertainment, movie or children s channels, such central themes to include without limitation, adult, the arts, food, factual documentary, game shows/gaming, health, history, home, lifestyle, music, natural history, religion, science, shopping, travel, weather and foreign language Programme Services aimed at specific ethnic groups,. In the event of any uncertainty as to whether a Programme Service meets the foregoing criteria for a Niche/Specialist Programme Service, and particularly where a Programme Service has more than one clearly defined central theme running through its programming, the positioning of the Programme Service within cable operators (or their satellite competitors in the Territory) electronic programme/channel number guides shall be the main factor to be considered by both parties in determining if a Programme Service falls within this definition. For the avoidance of doubt, comedy, children s and movie Programme Services shall not be considered Niche/Specialist. Children s means Programme Services commonly referred to as such and/or the majority of whose schedules shall consist of children s programming which have an Page 4 of 6